Marketing Exam 3
What are marketers trying to accomplish through promotion (informing, persuading, reminding, and building relationships)?
A customer to buy the product and be a returning customer
Why is Supply Chain beneficial
As customers have increasing power in the marketplace, firms will benefit from a supply chain that exists to enhance customer value
Disintermediation
Channel members bypass another member and sells/buys products directly Process by which traditional intermediaries are eliminated as companies question the value added by layers in the distribution channel
Post-Testing
Conducting research on consumers' responses to advertising messages they've seen or heard o Unaided recall: What do you remember being exposed to o Aided recall: What do you remember about the sheetz commercial last night o Attitude Tests o Inquiry tests o Sales tests o Does it work? Does it accomplish the goal
levels of distribution intensity
1) Exclusive Distribution- only one retailer in a specific geographic area carries the firm's products a. Fewest locations, rare and special brand so they want to convey a special image 2) Selective Distribution- Relies on few retailers in an area to sell products a. Middle amount of locations 3) Intensive Distribution- designed to place products in as many outlets as possible a. Most locations
steps in planning and executing an ad campaign
1. Identify target audience 2. Set advertising objectives 3. Set the advertising budget 4. Design the message 5. Evaluate and select the right media 6. Schedule the advertisement 7. Execute the campaign 8. Assess the campaign
steps in setting your social media strategy
1. Listen 2. Analyze 3. Do a. Identify strategy and goals b. Identify target audience c. Develop budget d. Develop the campaign e. Implement the campaign f. Monitor and change
The process of developing an IMC program
1. Planning: Developing the promotion program a. Identify target audience b. Specify the objectives c. Set the budget d. Select the right promotional tools e. Design the promotion f. Schedule the promotion 2. Implementation: Executing the promotion program a. Pretest the promotion b. Carry out the promotion 3. Evaluation a. Posttest the promotion b. Make needed changes
steps in the selling process
1. Prospecting: develop list of leads and assess their potential 2. Preapproach: further research and develop plan for how to approach 3. Approach: first contact- gain attention, stimulate interest, transition to presentation 4. Presentation: needs assessment, customize presentation, be prepared for common objections, listen and ask questions 5. Close the Sale: gain commitment of purchase, but realize when NOT to push now, in order to deepen relationship for future 6. Follow up: check with customer, get feedback (proactive complain handling), offer support-great tools for relationship selling
Pull Strategy
Directing communications to the end customer o Must understand the target market and other audiences
Push Strategy
Directing communications to the marketing channel
Two types of discrepancies
Discrepancy of Quantity Discrepancy of Assortment
Social Media allows marketers to
Have conversation with consumers Forge deeper relationships Build brand loyalty
Types of Channel relationships
Independent/Conventional Vertical Horizontal
Designing the message
Informational - offer fractal information and strong arguments Emotional - satisfy audience's emotional desires rather than utilitarian needs
What influences channel strategy
Market Factors Product Factors Producer Factors Cost vs Profitability Adaptability
What traits tend to be found in successful sales people?
Motivation, dependability/trustworthiness, ethical behavior, customer and product knowledge, interpersonal communication skills, flexibility, emotional intelligence, enthusiasm
Dual Distribution System
Multiple channel usage, either to the same or different target markets. Ex: Pharmaceutical companies sell to hospitals and consumers
Factors Affecting the promotion mix
Nature of the product product life cycle target market characteristics types of buying decision Funds available Push or Pull Strategy
Product Placement
Paying (not always) to have product featured in nontraditional promotional status
Scheduling Metrics
Reach Frequency Gross Rating Points
Gross Rating Points
Reach * Frequency
Channel captains have some sort of influence relative to other members
Reward - ability to give and take away Identification - firms want to be associated with you Expertise - Firm has greater expertise Legitimate - Legal Authority, based on contracts
Supply Chain should be
Should be CUSTOMER DRIVEN (should coordinate and integrate the customer the highest possible value)
the communication process (and the components that comprise the process)
Source > Encoding Message > Communication Channel > Decoding Message > Receiver o Encoding message= encoder turns source's idea into a message, what you say and how you say it o Communication channel= where you say it o Decoding message= how the receiver interprets it Hoping they interpret it as intended Why you should be pre-testing everything before it goes out o NOISE can happen at any time
Types of Presentation
Stimulus-Response Format Formula Selling Format Need-Satisfaction Format
Key Processes of SCM
Supplier Network= raw materials > parts suppliers > manufacturer
What functions do/can channel members perform?
Transactional Functions- buying, selling, and risk taking Logistics Functions- storing, assorting, sorting, and transporting Facilitating Functions- financing, grading-inspecting, testing, marketing information and research This is specialization and division of labor Can add a distributor, provides contact efficiency
How does the channel of distribution produce contact efficiency?
Using a distributor will provide contact information because the producers only have to coordinate selling to one entity instead of many
Public Relations
a form of communication management that seeks to influence the feelings, opinions or beliefs held by stakeholders o Ex: especial events, lobbying, annual reports, press conferences, social media, etc.
Formula Selling Format
a presentation consists of information that must be provided in an accurate thorough, and step-by-step manner to inform the prospect Canned Sales Presentation= memorized, standardized message conveyed to every prospect
Marketing Channel/ Channel of Distribution
a set of firms and individuals involved in the process of making a product or service available for use or consumption It is the end part of supply chain
Horizontal
channel members at the same level work together through formal arrangements o Ex: Meeting of the Marked Tattoo convention in Pittsburgh
Independent/Conventional
channel members mostly work independent of one another
Discrepancy of Assortment
channel members provide a variety of products in one location o Ex: Beer distributors also have cigars, candy, and other beverages
Discrepancy of Quantity
channel members purchase large quantities from manufacturers and break them down into smaller quantities their customers can handle o Ex: When sheetz sells beer, they can't hold whole pallets of beer
Pulse Schedule
combines continuous and flighting o Steady base level throughout the year but increasing during certain periods
Public Relations
communication management that seeks to influence feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees and other publics about a company and its products o Evaluates public attitudes o Identifies issues of public concern o Executes programs to gain public acceptance
Presentation
convert a prospect into a customer by creating a desire for the product or service
Integrated Marketing Communications
designing marketing communications programs that coordinate all promotional activities to assure a consistent message at every contact point where a company meets the consumer o Media advertising, personal selling, sales promotion, public relations, direct marketing, social media o CUSTOMER FOCUSED
Direct Marketing
direct communication with consumers to generate a response in the form of an order, request for more information, or visit to the store o Ex: Face to face, direct mail, catalogs, telephone solicitations, online, etc.
Form Utility
enhancing the good to make it more appealing to buyers o Ex: steam, hang, display a shirt nicely
Stimulus-Response Format
given the appropriate stimulus by a salesperson, the prospect will buy Needs a lot of trial and error, hoping to hit the right button Suggestive selling
Possession Utility
helping buyers take possession of a good or service so they can enjoy the product
Media Scheduling
is when you run your ads and such
Pretesting
make sure people are interpreting the message as intended o During creation of the ad to assess execution techniques o Are elements working together to accomplish what they're intended to
Channel of Distribution
manufacturer > resellers > consumers
Listen on Social Media
monitor what is being said about the brand o Rich source of marketing research
Technical concerns in direct marketing
most marketers get their information from databases to collect info about consumers; many places have opt-in requirements
PR Activities
news/press releases, news/press conferences, media relations, sponsorships (events, issues/causes), lobbying, consumer education, crisis management (needs to start before a crisis happens
Publicity
non-personal, indirectly paid presentation of an organization, product, person, or idea o Publicity is generated by an ad, a product, etc. o Ex: A lot of publicity was generated from Volvo commercial of man doing split o Publicity is NOT free Cost is indirect
Reach
number of different people or households exposed to an advertisement; often expressed as a percentage of the total target market
Vertical
o Administered- no common ownerships or contractual relationships, dominant channel member controls the relationship o Contractual- independent firms integrate their efforts on a contractual basis to obtain greater functional economies and marketing impact than they could achieve alone o Corporate- Parent company owns multiple levels of channel and can control and dictate the priorities of the channel
4 Types of channels for consumer products:
o Direct Channel: Producer to Consumer o Retail Channel: Producer to Retailer to Consumer o Wholesaler Channel: Producer to Wholesaler to Retailer to Consumer o Agent/Broker Channel: Producer to Agents/Brokers to Wholesalers to Retailers to Consumers
What comprises Promotion P
o Includes: advertising, sales promotion, personal selling, public relations, and direct marketing o Must think big picture about what you're trying to accomplish with the communications program (will be a combo of big picture goals) o Customer is the center of the marketing strategy
appropriate/critical to use personal selling as a promotion tool
o Push strategies o B2B Products o Complex and expensive products o Products requiring a "personal touch"
Vertical Conflict
occurs between different levels in a marketing channel 1. Channel member bypasses another member and sells/buys products directly (DISINTERMEDIATION) 2. Disagreements over how profit margins are distributed among channel members 3. Manufacturers believe wholesalers/retailers are not giving their products adequate attention
Horizontal Conflict
occurs between intermediaries at the same level in a marketing channel (between two or more retailers) 1. A manufacturer increases its distribution coverage in a geographical area 2. Different types of retailers carry the same brands
Advertising
paid form of non-personal communication about an organization, good, service, person, or idea by an identified sponsor • Execution must accomplish what it wants to o Ex: LGTV advertising on magazine spine
Global concerns in direct marketing
privacy is an issue
Time Utility
providing products when customers want to purchase them
Place Utility
providing products where customers want to purchase them
Flighting Schedule
runs in spurts throughout the year o Periods of heavy advertising followed by periods of no advertising to reflect seasonal demand o Could be school year, holiday, season
Continuous Schedule
runs steadily throughout the year
Consumer-Oriented Sales Promotions
sales tools used to support a company that are direct at the ultimate consumers o Coupons, deals, premiums, contests, sweepstakes, samples, loyalty programs, point-of-purchase displays, rebates, and product placements
Trade-Oriented Sales Promotions- s
sales tools used to support a company's advertising aimed at the wholesalers, retailers, or distributors o Allowances and discounts: merchandise allowance, case allowance, and finance allowance o Cooperative advertising: manufacturer pays a percentage of the retailer's advertising expense o Training of distributors' salesforce
Sales Promotion
short term inducement of value offered to arouse interest in buying o Ex: coupons, sales, contests, sweepstakes, etc.
Guerrilla Marketing/Alternative Media
techniques use low-cost unconventional means to convey the message and break through the clutter of traditional media o Ads on non-traditional items o Advertainment: looks exactly like entertainment (BMW short films) o Advergaming: executing and creating games (Warhol Museum hiding books)
Logistics
the activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost
Frequency
the average number of times a person in the target audience is exposed to a message or advertisement
Appeals
the different emotions markets try to target o The common ones are Fear, Sex, and Humor
Supply Chain Management
the integration and coordination of all activities across firms in a supply chain for the purpose of producing
Relationship Selling
the practice of building ties to customers based on a salespersons' attention and commitment to customer needs over time o Involves mutual respect and trust among buyers and sellers o Creates long-term customers
Logistics Management
the practice of organizing the cost effective flow of raw materials, in-process inventory, finished goods and related info from point of origin to point of consumption to satisfy consumer requirements (Efficient flow of materials)
Need-Satisfaction Format
the salesperson dominates the conversation by probing and listening to the needs and interests of the prospect Adaptive Selling= adjusting the presentation to fit the selling situation Consultative Selling= focuses on problem identification
Hierarchy of Effects
the sequence of stages a prospective buyer goes through from initial awareness to eventual action 1. Awareness: consumer's ability to recognize and remember the product 2. Interest: increase in consumer's desire to learn about some features of the product 3. Evaluation: consumer's appraisal of the brand on important attributes 4. Trial: consumer's first purchase and use of the product 5. Adoption: through a favorable experience on the first trial, the consumer's repeated purchase and use of the product
Supply Chain
the various firms, both internal and external to the company, involved in performing the activities required to produce and deliver the product to consumers or industrial users o Refers to all the firms as the product moves through from raw materials to the end consumers
Personal Selling
two-way flow of communication between a buyer and seller designed to influence a person's or group's purchase decision o Face to face, video conferencing, phone or internet o Advantages: answer questions, create relationship, most flexible method of promotion, market information o Disadvantages: most expensive per contact, can't script and completely control
Personal Selling
two-way flow of communication between buyer and seller designed to influence a person's or group's purchase decision
Owned Media
whatever the brand puts out without paying o Brands publish own content to maximize brand value
Earned Media
when an outside source reports on the brand o Public relations/publicity model
Consumer Generated Media
when consumers speak out about the product o Social media makes it easier for consumers to connect and have a bigger impact
channel conflict (vertical and horizontal)
when one channel member believes another channel member is engaged in behavior that prevents it from achieving its goals
primary motivations for mobile app use
• "Me time"- relaxation and entertainment • Socializing • Shopping • Accomplishing- managing finances, health, and productivity • Preparation- planning for upcoming activities • Discovery-seeking news and information • Self-Expression- hobbies and interests **Must think about how customers spend time on apps to see if you can be effective with social media
value added by personal selling
• Allows the marketer to create a relationship and have a conversation • Gives customer a lot of information
What are important characteristics of IMC?
• Begins with the customer • Creates a single unified voice • Seeks to develop relationships • Involves 2-way communication • Generates a continuous stream of communication • Measures results based on actual feedback
Control Continuum
• Companies want control over the message, but control is expensive • You can't control how people interpret things, so you must try to give the best image Advertising Sales Promotion Personal Selling Public Relations Word of Mouth (order of high control to low control) • Personal Selling=can't script a conversation • PR= a lot of publicity and you can't control what reporters/magazines say
Criteria/concerns for selecting modes of transportation
• Cost • Transit Time • Reliability- consistency • Capability- abilities and skills, proper equipment • Accessibility- access to particular routes or networks • Traceability- can shipments/items be located easily
why direct marketing is growing so quickly
• Direct marketing uses direct communication with consumers to generate a response in the form of an order, request for info, or a visit to the store o Can be face to face, direct mail, catalogs, telephone, direct response advertising, and online communications • The ability to customize messages to create one-on-one interactions is appealing because it leads to more favorable attitudes
Comparative Advertising
• Form of competitive advertising • Direct Comparative- comparing with another brand o Ex: Orville Redenbacher throwing shade at PopSecret • Indirect Comparative- comparison to "the leading product on the market"; doesn't target a particular brand • Comparative advertising is good when it is clear that our product is better
how the promotion mix changes over the four life-cycle stages
• Introduction Stage- create awareness; all promotional mix elements are used • Growth Stage- Want to persuade the consumer to buy; advertising and personal selling are used • Maturity Stage- maintain existing buyers; advertising and sales promotions are used • Decline Stage- little money is spent here
Main Objectives for Social Media
• Listen and Learn: monitor what is being said about the brand; develop a listening strategy • Build relationships and awareness: open dialogues with stakeholders; answer customer questions candidly • Promote products and services: get customers talking about products and services • Manage reputation: respond to comments and criticisms; participate in forums and discussions • Improve customer service: seek out displeased customers and engage them directly to solve issues
the considerations to evaluate and select the right media
• Problem solving approach designed to select the best communication media given the specific objectives • Outlines the planner's best estimate of which media and vehicles will be most effective in attaining campaign objectives o Target market profile o People reached by different vehicles o Advertising patterns of competitors o Capability of medium to convey desired info o Compatibility of product with editorial content • Must realize the advantages and disadvantages of different types of media • Must select the right media o For complexity: tv, print ads (especial magazine) Billboards would be bad for complexity
importance of customer relationship management to direct marketing
• This is sending catalogs to certain customers • Concerns with direct marketing: o "Opt-in" and "Opt-out" regulations Some place have systems where you have to opt in to receive messages, others must allow people to opt out o Tracking Concerns o Ethical concerns vs regulatory requirements
4 types of utilities
Time, Place, Form, Possession
Institutional Advertising
advertisements that build goodwill or an image for an organization o Advocacy- position of the company on an issue Ex: Coca Cola billboard with WWF and Rainbow Absolut Bottle o Pioneering- what a company is, what it can do, where it is located o Competitive- promote advantage of a product class (primary demand) Ex: "Beef for Dinner", Cotton commercials o Reminder- bring company's name to the attention of the target market again
Product Advertising
advertisements that focus on selling a particular good or service o Pioneering/Informational- what it is, what it can do, where it can be found o Competitive/Persuasive- promotes specific brand's features and benefits o Reminder- reinforce previous knowledge of a product
Promotion in the promotion mix
any communication by marketers that informs, persuades, reminds, and builds relationships with potential buyers of a product to influence an opinion or elicit a response
Advertising
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
Paid Media
anything the brand pays for to be put out o Advertising, personal selling, direct marketing, sales promotions